Impact of New VAT Regulations: The announcement of new VAT regulations on gold by the Chinese government led to a significant decline in the stock prices of gold jewelry retailers, as reported by BOCI.
Market Analysis: BOCI anticipates a mild negative impact on industry profits, predicting a mid-single-digit decline in EPS, but believes the current stock price correction is excessive due to other factors like falling gold prices and profit-taking.
Optimism for Key Retailers: Despite the market downturn, BOCI remains optimistic about CHOW TAI FOOK and LUK FOOK HOLD, rating both as Buy with target prices of $17.8 and $23.8, respectively.
Investor Sentiment: The upcoming interim results for both companies are expected to alleviate investor concerns amidst the current market volatility.
Wall Street analysts forecast 00590 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00590 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 00590 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00590 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 25.680
Low
Averages
High
Current: 25.680
Low
Averages
High
Citi
Buy
maintain
Al Analysis
2026-01-05
Reason
Citi
Price Target
Al Analysis
2026-01-05
maintain
Buy
Reason
The analyst rating from Citi is based on the expectation that LUK FOOK HOLD will announce stronger operational data for the third quarter of FY26 in January. The report highlights the company's strong sales momentum in October and November, which is anticipated to continue into December. Additionally, the adjustment of the value-added tax policy is expected to positively impact the gross profit margin for the second half of FY26 and the first half of FY27. As a result, Citi maintained a Buy rating and raised its target price for the stock.
BOCI
Buy
maintain
$29.2
2025-12-02
Reason
BOCI
Price Target
$29.2
2025-12-02
maintain
Buy
Reason
The analyst rating for LUK FOOK HOLD (00590.HK) is maintained at "Buy" by BOCI due to several positive factors. The company's 1HFY2026 net profit grew by 43% year-over-year, exceeding expectations, which reflects strong performance amid expanded product offerings and a recovery in industry sales. Looking ahead, BOCI anticipates that results will benefit from lower inventory costs, manageable hedging losses, and improved sales performance in the Hong Kong and Macau markets. These factors contribute to the continued upward revision of the company's valuation, leading BOCI to raise its target price to $29.2.
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Haitong International
Outperform
initiated
$40.35
2025-12-02
Reason
Haitong International
Price Target
$40.35
2025-12-02
initiated
Outperform
Reason
Haitong International issued an "Outperform" rating for LUK FOOK HOLD based on several positive financial indicators and forecasts. The broker anticipates significant growth in net profits for FY2026-2028, projecting $1.578 billion, $1.8 billion, and $1.977 billion, respectively. The company's strong performance in the first half of FY2026, with a 25.6% year-over-year increase in revenue to $6.843 billion and a 33.2% increase in gross profit, supports this positive outlook. Additionally, improvements in profit margins and a substantial operating profit growth of 45.4% year-over-year further bolster the rating. The assigned target price of $40.35, based on a 15x PE ratio for FY2026, reflects the broker's confidence in the company's continued financial strength and growth potential.
BOCI
BOCI
maintain
2025-11-10
Reason
BOCI
BOCI
Price Target
2025-11-10
maintain
Reason
The analyst rating from BOCI is based on the belief that the recent stock price correction of gold jewelry retailers is excessive. Despite expecting a mild negative impact on industry profits due to new VAT regulations on gold, BOCI anticipates only a mid-single-digit decline in EPS. They attribute the stock price decline to various factors, including falling gold prices and profit-taking related to US government shutdowns. BOCI remains optimistic about CHOW TAI FOOK and LUK FOOK HOLD, rating both as "Buy" with target prices of $17.8 and $23.8, respectively, and suggests that upcoming interim results may help alleviate investor concerns.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
